Don't pay money up front. It's against the law for a telemarketer that is offering to help you obtain a loan to ask for any fees in advance. You must have the loan in your hands for at least 7 days before the company may ask for payment. This applies to telemarketers that offer loans directly and companies that offer to help you obtain a loan through a third party.
	Apply for loans through local banks and credit unions. Dealing with someone locally makes it easier to resolve problems if they arise. Ask if the financial institution is licensed by a state or federal agency and then check to make sure that it is.
	Don't fall for promises of a loan regardless of past credit problems. If you have poor credit, it is unlikely that any legitimate bank or other financial institution will give you a loan. Your credit history is one of the main criteria used determine whether you will be able to repay a loan.
	If you can't get a loan yourself, get a co-signer. A friend, relative or employer may be willing to apply with you for a loan. But bear in mind that your co-signer is equally responsible for the debt; if you don't make your payments on time, that person can be held liable for the loan, and his or her credit record will also be affected.
	Get it in writing. If a company offers you a loan, get all of the terms of repayment, including interest rates, in writing. Shop around for the lowest interest rate. Make sure that any promises that are made are included in your written agreement.
	You can get free or low-cost help with credit problems. If you've got bad credit or no credit, you can get advice on how to build a good credit record from your local Consumer Credit Counseling Service. This nonprofit organization may also be able to negotiate payment plans with your creditors if you have fallen behind. To find the nearest CCCS office, call toll-free, 1-800-388-2227.

If you need advice about a telephone solicitation or you want to report a possible scam, call the NFIC hotline at 1-800-876-7060. You can also ask questions or report fraud using our online forms.

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